KPI Benchmarks : Offer-to-Accept Cycle Time
- Benchmark Range 2.0-8.1
- Benchmark Average 4.6
- Benchmark Sample Size (n) 20
* Is High or Low Best: Lower is Better
Download a Sample Offer-to-Accept Cycle Time
KPI Details : Offer-to-Accept Cycle Time
Offer-to-Accept Cycle Time measures the number of business days required for a selected candidate to accept a job offer, from the time the offer is extended until when the candidate formally accepts the offer (typically done by signing and returning an offer letter). A relatively high value for this metric is typically related to a few common factors, including inefficient interview processes and communications (i.e., not letting the candidate know what is expected during and after an interview, not providing the candidate with relevant information during the interview process, etc.), poor offers on the part of the company (includes what the candidate may feel to be sub-par payment, benefits, etc.), long cycle times dedicated to hiring decisions, and sub-par Recruiting & Hiring employee training and performance. Each of these factors can lead to longer offer submission cycle times, longer than expected offer negotiations (i.e., the candidate puts forth a counter offer, etc.), increased candidate frustration and increased chances that the offer will go to a candidate that is not the best fit for the position, all of which can vastly increase the chance that the candidate will reject the offer put forth by a company and instead accept a position in another company.
KPI Best Practices : Offer-to-Accept Cycle Time
- Offer benefits and compensation packages on par with or better than competitors
- Emphasize company culture to exhibit value of the company beyond just work
- Be transparent with candidates in terms of compensation, job expectations, etc. to avoid surprises
KPI Calculation Instructions Offer-to-Accept Cycle Time?
The calendar dates/times of two events are used to derive this KPI: (1) the date that the offer is extended by the employer to the candidate (typically in the form of a formal offer letter), and (2) the date that the candidate accepts the offer letter offered by the employer. Job offer letters are considered to be a formal written document sent by an employer to a job candidate selected for employment and typically contains the job description, salary, benefits, paid time-off information, work schedule, reporting structure, etc. Job offer letters must be signed and returned in order to illustrate a formal acceptance of the position.
KPI Formula :
(Sum of Time to Accept an Extended Job Offer) / Total Number of Offers Extended
Cost per Hire
The total cost of recruiting and hiring (labor, job postings, travel costs, etc.) for all open positions (front-line or entry-level staff, managers, directors and executives) divided by the...
KPI Type : Cost
Formula : Total Recruiting Costs / Number of Open Positions Filled
KPI Benchmark Range : $1.5K-$6.1K